2001 (8) TMI 81

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....see-Kwality Restaurant and Ice Cream for the assessment years 1964-65, 1967-68 and 1966-67. Pursuant to the direction given by this court under section 256(2) of the Income-tax Act, 1961 (in short "the Act"), the following questions have been referred for the opinion of this court: "1. Whether, on the facts and circumstances of the case and on a true construction of the agreement dated April 30....

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.... The factual position as indicated in the statement of case is that the assessee had incurred various expenditure on behalf of one Maharaja Restaurant from the date of inception of that restaurant which were claimed as business loss. The Assessing Officer found that there was no business relation with Maharaja Restaurant and, therefore, the claim of expenditure was held to be untenable. The asses....

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....d that the assessee could have demanded (in return for finance and other assistance including advice on hotel management it provided) that the German company should pay out fees or share the profits from the Maharaja Restaurant and in that case the income or loss from Maharaja Restaurant that came to the assessee would have been dealt with under the head 'Business'. We do not find these submission....

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....owever, on being moved under section 256(2) of the Act, the questions set out above were directed to be referred. Pursuant to the direction, the Tribunal has referred the questions along with the statement of the case. According to learned counsel for the Revenue, the Tribunal has categorically held that there was no business link and that any hypothetical issue cannot be pressed. There is no s....